Statement Summary
The SEC has charged Daniel J. Motha, former CFO of Location Ventures, with involvement in a $93 million real estate investment fraud scheme alongside founder Rishi Kapoor. The allegations suggest that from January 2018 to March 2023, Motha and Kapoor misled over 50 investors by falsely claiming significant cash investments and misrepresenting the structure of their companies. The funds raised were misappropriated, with at least $6 million taken by insiders, including $1 million by Motha personally. The SEC has previously acted against Kapoor and others, securing an asset freeze and appointing a receiver. Motha faces charges under two sections of federal securities laws, with penalties sought including injunctions, disgorgement, and bars from corporate positions.
Original Statement
Daniel J. Motha
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26293 / April 28, 2025
Securities and Exchange Commission v. Daniel J. Motha, No. 1:25-cv-21892 (S.D. Fla. Filed Apr. 25, 2025)
SEC Charges Former CFO of Real Estate Development Company with Participating in a $93 Million Fraud Scheme
On April 25, 2025, the Securities and Exchange Commission charged Daniel J. Motha, the former CFO, President, and board member of Location Ventures, LLC, with participating in an alleged $93 million real estate investment fraud alongside Rishi Kapoor, the founder and former CEO of Location Ventures. The SEC previously charged Kapoor, Location Ventures, and 21 other related entities in connection with this fraudulent scheme and obtained emergency relief, including an asset freeze and an appointment of a receiver over the corporate entities.
According to the SEC’s complaint, from approximately January 2018 through March 2023, Motha and Kapoor raised approximately $93 million from more than 50 investors to fund their real estate development companies, including Location Ventures, and their respective real estate development projects. The complaint alleges that Motha and Kapoor solicited investors by falsely claiming they made a $13 million cash investment in Location Ventures and falsely representing that Location Ventures and its related companies were separate and distinct investments, possessing their own members, designated capital, and corporate identities.
According to the complaint, investor money was shuffled among the various companies and accounts, and Motha and other insiders misappropriated at least $6 million of investor funds—$1 million of which Motha misappropriated for himself.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, charges Motha with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, disgorgement plus prejudgment interest, a civil penalty, and an officer-and-director bar against Motha.
The SEC’s investigation was conducted by Jordan A. Cortez and supervised by Sean O’Neill and Glenn Gordon, with the assistance of Russell R. O’Brien and Teresa Verges, all of the Miami Regional Office. The litigation will be led by Mr. O’Brien and Mr. Cortez, and will be supervised by Ms. Verges.
